What is a Foreclosure
When you purchase a piece of property and need to borrow money from a bank or other lender, the property becomes COLLATERAL for the loan. If payments aren’t made, the lender has the right to FORECLOSE or repossess the property itself. A foreclosure may force the owner to resume payments or lose the property at auction.
Could you become involved in a foreclosure? Some of the reasons for foreclosure are avoidable, and some are unavoidable. The most common causes: divorce and unemployment. If divorce leaves one partner responsible, house payments may be prohibitive. Unemployment, of course, as well as serious illness or death may lead to the inability to make payments.
